Direct Lending Revolution | Snippet Finance

There is a big new trend in the world of finance – direct lending.
Private equity firms are grabbing a slice of the leveraged lending market from the big wall street banks.
It is leading to lots of competition – leveraged loan syndication fees are down 29%.
Apollo think that private could gain as much as 10% share in the $2.5 trillion high yield loan and bond market in the next 5 years.
This could be a function of higher bank risk weights eroding balance sheet advantage and huge fund raising capacity of private equity.
Returns as well could be an explanation.
The risks are clear as more and more lending is slipping into less regulated corners of the financial markets.